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(Cost of preferred stock) The preferred stock of Texas Southern Power Company sells for $37 and pays $5 in dividends. The net price of

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(Cost of preferred stock) The preferred stock of Texas Southern Power Company sells for $37 and pays $5 in dividends. The net price of the security after issuance costs is $32.93. What is the cost of capital for the preferred stock? The cost of capital for the preferred stock is %. (Round to two decimal places.)

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